When you want to buy a house in Minnesota, you need to know the right mortgage and whether it’s affordable, according to a report released Tuesday.
The report by the real estate firm Aite Group was based on data from the Real Estate Board of Greater Minneapolis.
It says the median price for a detached house in Minneapolis was $1.3 million in 2017.
It says the average monthly payment was $3,857 and the average sale price was $5,854.
If you’re looking to buy your first home in Minnesota for $1 million, you may be out of luck if you have a bad credit history, said Kevin Gannon, president of Aite.
“You can’t be getting credit cards, getting refinancing, paying down your mortgage, and then being able to walk into the realtor’s office and say, ‘Hey, I’m looking to get my mortgage refinanced,'” he said.
“So what you really need to be doing is doing all of those things.”
Gannon said it’s important to keep in mind that Minnesota is an expensive state for real estate.
“I would never recommend buying a home in the state of Minnesota, even for the lowest price,” he said, adding that there are other states that are more affordable.
“In terms of real estate and the housing market, the people that are going to make the best money in Minnesota are people who have a good credit history,” he added.
“People who are on credit.”
Real estate is the second-most popular type of loan in Minnesota after mortgages, according the report.
Gannon says the majority of mortgage borrowers are older, and the median age of the people who took out a mortgage last year was 46.
The average loan size is $2,400, and some people have down payments of as much as $10,000.
“The problem that we see in the mortgage market is that older borrowers are making more money,” he explained.
“The problem is that the mortgage is not making them as comfortable as it should be.”
Glynn said that he thinks it’s not a big problem for homeowners, but for renters and investors.
“When you’re buying a house, it’s really important to understand the loan terms and the cost of the mortgage, because if you’re renting and you’re on the mortgage and you don’t understand what the terms are, it will affect your decision on whether to purchase a house,” he told KARE 11 News.
Glynn says a good rule of thumb is to look at the monthly payments and the interest rate on the loan.
“Then, once you get into the home, you should go through your credit history to make sure that you have the right credit history for your specific situation,” he continued.
“And if you do have the correct credit history and the right loan, it’ll be a very attractive place to buy.”© 2018 KARE